Have you seen the news? Microsoft has signaled that future Xbox consoles will run Windows, which points to one big possible future: gaming PCs may soon be taking the living room by storm. It sounds like the next Xbox will run Steam games, too.
Meanwhile, at CES 2025, Valve’s Pierre-Loup Griffais told PCWorld that going beyond handhelds to living room PCs was one of Valve’s long-term goals. Remember when Steam Machines launched back in 2015? A decade later, it seems we may be looking at their return—except in a new, more interesting way. Thanks to the Steam Deck, Linux-based gaming PCs may be a bigger threat to Microsoft this time around.
In short, the next great console war will likely go down between Microsoft and Valve. Both companies have signaled their intentions, with Xbox-themed Windows PCs battling SteamOS-running Linux systems for living room dominance. Which one will come out on top?
Xbox is smartly merging with Windows
Next-generation Xbox consoles look like they will be running Windows! And they won’t be locked to a single store—it sounds like the next Xbox will also run Steam and other PC gaming platforms.
That’s not a big surprise as Microsoft already announced an Xbox-branded Windows handheld PC named the Asus ROG Xbox Ally. Microsoft hides that it runs Windows, which makes sense because Windows has so far been a mess on gaming handhelds. When I reviewed the Lenovo Legion Go S, I found that Windows made the entire experience more frustrating compared to a Steam Deck, and SteamOS delivers better performance on the same hardware.
But Microsoft isn’t just shrugging its shoulders and letting PC manufacturers slap the Xbox name on gaming PCs. Instead, the company appears to be merging Xbox and Windows in a smart way, at least according to press announcements. For example, Microsoft says existing Xbox games will run on that next-generation console, and Windows is transforming to run better on gaming-focused devices.
SteamOS is way, way, way better now
Valve initially launched Steam Machines back in 2015, a line of gaming PCs designed to offer a console-style living room experience. While Valve didn’t make its own hardware for those PCs—aside from the now-discontinued Steam Controller—the company did partner with PC makers like Alienware, who made their own hardware that ran Valve’s Linux-based SteamOS.
The initial line of Steam Machines—released just a few years after Microsoft freaked Valve out with the launch of Windows 8 and its iPad-style app platform locked to Microsoft’s own app store—didn’t take the world by storm. Those Steam Machines ran games that were ported to Linux… and the results weren’t pretty.
Since then, however, Valve’s Proton software compatibility layer has provided a way for the Steam Deck and other SteamOS-based machines to run Windows games directly on Linux, sometimes with better performance than they have when running on Windows itself.
The software is now much more ready. And Valve is already making moves to certify SteamOS for other manufacturers’ devices. Lenovo’s Legion Go S is the first non-Valve SteamOS device in the modern era. Valve doesn’t have to make its own Steam Machines—all Valve has to do is give the stamp of approval to PC makers who want to deliver their own experiences. Except this time, Valve’s SteamOS is ready.
Valve’s Steam Deck is already a living room gaming console
Valve already has a solid living room console. It’s called the Steam Deck! Paired with a dock—like Valve’s own Steam Deck docking station or a third-party dock like this one—the Steam Deck can easily connect to and run on your living room TV. Pair a controller of your choice (or even a mouse and a keyboard) and you’ll be using your “handheld” gaming console docked to your living room TV, just like you would with a Nintendo Switch or Switch 2 console.
While the Steam Deck doesn’t have the power to run the latest PC games at high graphics settings, there are solutions. Nvidia’s GeForce Now cloud gaming platform works on the Steam Deck, giving you a powerful way to play demanding games with high graphical detail in your living room right on your TV, just like you can on the go.
Valve’s Steam Deck also supports Remote Play, so you can stream games wirelessly from your own PC right to your living room TV. It’s a quick-and-easy-to-set-up living room gaming experience.
Valve probably won’t release its own Steam Box any time soon…
Near the start of 2025, we heard rumors of Valve working on its own Steam Machine-style living room console, and those rumors took the web by storm. Valve appeared to be working on support for AMD RDNA4 hardware. But, as Valve developer Pierre-Loup Griffais explained, that’s nothing new. Valve always does this kind of work, and it’s no sign that a proper SteamOS console is imminent.
There’s at least one case of what appears to be a “Valve Steam Box” in the wild, but that machine is a prototype from the 2017 era. Definitely not a recent device to hang our hopes on! Given the rumors circulating online, it’s much more likely that Valve will release its own “Deckard” VR headset—and I hope they do. The VR gaming industry needs the help.
…but Valve doesn’t need to release its own SteamOS console
iBuyPower’s SBX Steam Machine from 2015.
iBuyPower
Valve doesn’t need to release its own hardware. If Microsoft is building to a Windows-based future for Xbox consoles, many users will want a proper SteamOS-based interface for their consoles. But why run Steam on a combination Xbox-plus-Windows-PC when you can run it on SteamOS and have the slick experience you get on a Steam Deck?
Heck, if the future of living room gaming involves PCs, why would Valve let Microsoft run away with that without any competition? The Steam Deck needed to exist—and needed to be a Valve-created product—because it wasn’t just about the software. There was no great handheld gaming PC that delivered what Valve delivered.
When it comes to the living room, things are different. Gaming PC companies can deliver excellent console-style experiences in everything from a “mini PC” form factor to a traditionally large gaming PC. The hardware is already ready, so Valve doesn’t have to be the one making the perfect living room PC. SteamOS is more mature than ever, too—and PC makers may be eager to get into the living room and start competing against Xbox, PlayStation, and Nintendo.
It’s about time PCs took over living rooms
This is PCWorld, so I’ll just say it: I’m happy the PC is taking over the living room. While the simplicity of console gaming is great, I’ve long hoped for a more open gaming experience in the living room. I want multiple stores, I want consoles that can run homebrew games from outside stores, I want support for mods, and I want all the other cool stuff you can traditionally get from PC gaming but not console gaming.
Whether Valve decides to put SteamOS up against Microsoft’s new Xbox-Windows combo operating system, I’m just excited to see the living room move in a more open, PC-oriented direction.
But I do hope SteamOS goes toe to toe with Microsoft in the living room. If nothing else, competition is better for everyone. Valve’s SteamOS efforts have already made Microsoft take Windows PC gaming much more seriously, and that’s good for all PC gamers.